Does your business insurance policy need an update?
20, May, 2020
As your business grows and adapts, change is inevitable. The last thing you want is to find yourself in a position where your policy doesn’t fit your business needs. Depending on the size of the claim, you may find yourself in shaky waters. On the other hand, you may even be paying for coverage you don’t even need any more or worse, thank you have coverage when you don’t. Overall it is important to do an annual review of your needs and your coverages.
The industry you are in, the amount you make, and the level of risk you face all factor into the amount of coverage you have and how much you pay for it. Insurance is not one size fits all. So, when there are changes to your business, your insurance policy needs to be updated to accurately reflect your growing business needs and ensure you are covered.
Five Signs That Your Business Insurance Policy Needs an Update!
Not sure if you’re ready for an update? Here is a quick list of things that may indicate it’s time for an update.
- Growth in Revenue
More business could mean more problems if you don’t have the appropriate coverage. As your business grows, so does your risk exposure. A change in revenue and the growth of your business means you need to change your coverage level to reflect the increase. As your exposure increases, it is important to increase your liability limit and make sure you have comprehensive coverage for your risks.
- Change in Services You Offer
Increase in the services you offer also increases your risk exposure. It is important to evaluate that risk and have the needed protection if you are expanding into new industries or markets. If you move your business into a higher risk industry or expand your spectrum of services, you will need to increase your coverage to cover potential claims that could result from your professional activities. It is also important to make sure that your coverage also provides protection for the new risks that may arise from new business, such as cyber protection and coverage for valuable papers.
- Moving Office Space
Your commercial property insurance is directly tied to your office, so if you move to a new location or expand to more offices, your policy needs to be updated. Moving to a new area may affect your premium if the property is located in a higher risk area.
- Hiring More Employees
As your business grows, you will need more employees to fill the gaps and needs of your business. With more employees, comes more risk. Your business insurance most likely covers full-time employees but what about contractors? To ensure everyone is adequately covered, your sub-contractors should have their own liability insurance and you must have enough coverage for all your employees.
- Purchasing New Equipment
If your business has grown, chances are you’ve purchased more equipment or even upgraded your technology. If this equipment breaks down, your coverage may cover the cost to replace or repair. However, contents insurance and equipment breakdown insurance typically have a specific limit of equipment covered (e.g., $50,000), which is why you need to update your policy if you have more expensive and more valuable equipment to protect.
Designed specifically for Technologists, closely with ASET, the Technologists Office Protection Program (TOPP) provides comprehensive and customizable coverage to give you the peace of mind you deserve.
To see how the Technologists Office Protection Program can give you and your business comprehensive coverage that is designed to fit your needs CLICK HERE.